Rockbridge Closes Fund II

Rockbridge Growth Equity has closed its second fund, RB Equity Fund II LP and RB Equity Fund II-A LP, with $345 million of combined capital.

Rockbridge invests from $20 million to $100 million of equity in business and technology services companies that have at least $20 million of revenue and $5 million to $25 million of EBITDA. Sectors of specific interest include digital media, marketing services, financial and business services, and consumer-direct marketing sectors.

Fund II has already closed on four platforms with the buys in October 2019 of ProSites, a California-headquartered provider of website design and online marketing services to dentists, CPAs, and medical providers; and White Glove, a Michigan-based provider of digital marketing services for educational seminars and social media used by professionals in the finance, insurance, legal and real estate sectors.

More recent acquisitions include Quartile Digital, a New York-headquartered provider of advertising optimization and spend management software used on digital commerce platforms (October 2020); and RB Home Services, a platform investment formed by Rockbridge to acquire providers of residential repair and testing services. In January 2021, the platform acquired RAdata, a New Jersey-based provider of radon testing and treatment services.

Limited partners in Rockbridge’s new fund include fund-of-funds, corporate and public pensions, financial institutions, consultants, multi-family offices, and high net worth individuals.

“We are thankful for the strong support of our existing investors and are excited to add a select group of new investors,” said Brian Hermelin, a co-founder and managing partner at Rockbridge. “We are proud to be growing the firm on the strong foundation of our principals’ collective track record, built on over 50 years of investing and business building experience.”

“We believe that the success of the fundraising is a direct result of the performance and hard work of our portfolio companies and their leadership teams,” said Kevin Prokop, a co-founder and managing partner at Rockbridge.

Detroit-based Rockbridge was founded in 2007 by Mr. Hermelin and Mr. Prokop, with the support of Dan Gilbert, the founder of Quicken Loans.

Lazard was the placement agent on this fundraise and Kirkland & Ellis and Honigman provided legal services.

© 2021 Private Equity Professional | June 10, 2021